- Bitcoin has not bottomed out yet.
- A move below $3,000 will trigger panic selling.
The cryptocurrency market has calmed down on Friday, however, Bitcoin and all major altcoins are still in the red zone losing from 4% (IOTA) to 13% (Bitcoin Cash). the collapse wiped out over $700B, leaving many traders and investors in a dire state.
Cryptocurrency forums and chats are flooded with talks about Bitcoin capitulation, but some hardcore believers still expect a strong rebound towards $15,000-$20,000 within the nearest future. Whether their forecasts are correct, the time will tell.
Meanwhile, Oanda Corp.’s Stephen Innes adopts rather balanced approach towards the current situation on the cryptocurrency market. Speaking in the interview with Bloomberg, he mentioned, that the time to call capitulation has not come yet.
“There’s still a lot of people in this game,” Innes, head of trading for the Asia Pacific at Oanda, said by phone from Singapore. If Bitcoin “collapses, if we start to see a run down toward $3,000, this thing is going to be a monster. People will be running for the exits,” he explained.
At the same time, Innes expects BTC/USD to trade within $3,500 – $6,500 range in the nearest future.
At the time of writing, Bitcoin is changing hands at $4,248, off the Asian low registered at $4,090.
BTC/USD, the weekly chart